Browsing by Author "Tesfazgi, Ariam"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Assessment of Risk Management Analysis in Ethiopia Banking Sectors
    (A.A.U, 2021-07) Tesfazgi, Ariam; W., Dr. Temesgen
    The purpose of this article is to examine the effectiveness of commercial banks' risk management practices in Ethiopia. Using a contemporaneous mixed study approach, data was collected from 17 purposefully sampled commercial banks. 108 respondents from commercial banks were given open-ended and closed-ended questionnaires. The questionnaires asked about the importance of risk management practices, risk identification, risk monitoring, and the nature of risk management practices, among other things. The paper's main conclusions are that risk managers consider risk management to be critical to their bank's performance; credit risk, operational risk, liquidity risk, interest rate risk, and foreign exchange risk are the types of risks that cause the most exposures; current risk management practices have a reasonable level of success, and banks are implementing some of the approaches/techniques. Overall, the findings suggest that Ethiopian banks are indeed risk-averse. Some recommendations were made, including that banks should prioritize risk management training for their employees, make risk visible, measurable, and manageable, and embed a meaningful risk culture throughout all processes and activities